Tag Archives: DCAA

Proposal Adequacy Checklist – Final Rule (DFARS Case 2011-D042)

On March 28, 2013, the DFARS was updated to include contractor requirements to prepare and submit a proposal adequacy checklist with all proposals that require the submission of certified cost or pricing data (i.e., proposals subject to the Truth in Negotiations Act (TINA)). Continue reading Proposal Adequacy Checklist – Final Rule (DFARS Case 2011-D042)

The DCAA Website Gets a Facelift

By: Kelly Lynch

The Defense Contract Audit Agency (DCAA) website has received a facelift (www.dcaa.mil). The website now provides contractors with detailed instructions on how to request an audit; the site also provides a more direct path for contractors to understand the DCAA processes for all audits the agency conducts. Unfortunately, the new website will not help contractors receive more timely audits; however, it provides more information on what to expect during an audit.

If you notice that something is missing from the DCAA website, or if there is something you think should be added, we would love to hear from you.

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GAO Audit Report

By: Mary Karen Wills

GAO-13-131: DoD Initiative to Address Audit Backlog Shows Promise, but Additional Management Attention Needed to Close Aging Contracts

The Senate Armed Services Committee Report accompanying the National Defense Authorization Act for FY2012 directed the Government Accountability Office (GAO) to review the criteria and procedures for conducting incurred cost audits. This audit stems from the large volume of contracts that the Department of Defense (DoD) has not closed out on a timely basis. Closing contracts within a required time frame can limit the government’s exposure to certain financial risk. One reason why contracts are not being closed timely is the large backlog of incurred cost audits that must be completed by the Defense Contract Audit Agency (DCAA). GAO assessed DCAA’s efforts underway to reduce the backlog of incurred cost audits and the challenges DoD faces in addressing the contract closeout backlog.

DCAA implemented an initiative that revised its focus on performing high-dollar-value or high-risk-incurred cost audits. The thresholds were raised from $15 million to $250 million for an automatic audit of incurred costs. DCAA revised its high-risk criteria and reduced the number of low-risk audits that would be randomly sampled. GAO found this initiative promising, but found that the DCAA has not fully developed the measures by which it will assess whether this initiative is reducing the backlog in a way that protects taxpayers’ interests. GAO recommended that DCAA develop a plan with time frames and measures to assess its progress toward achieving these objectives.

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Inspector General – U.S. DoD

By: Mary Karen Wills

Semiannual Report to the Congress
April 1, 2012 to September 30, 2012

The Department of Defense (DoD) inspector general (IG) issued 79 reports identifying $2.8 billion in potential monetary benefits during this period. The Defense Criminal Investigative Service conducted investigations that resulted in 72 arrests, 167 criminal convictions, 37 suspensions, and 136 debarments, for a return of $3.3 billion to the U.S. government. Of top concern is contract oversight and training and equipping the Afghan National Security Forces, which are the critical means of establishing security and stability in Afghanistan.

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